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In electronics manufacturing the surge to outsource dates back to the 1990s, when large numbers of OEMs critically reassessed their manufacturing strategies to take advantage of new outsourcing opportunities that promised to improve their overall performance and reduce asset and operational costs.
Electronics can be outsourced to different countries located mostly in three regions: Asia, East Europe, and North America. Check our post Best Countries for Contract Electronics Manufacturing, Part 1 and Part 2 for more information on some of the countries in the list below. China's electronics manufacturing is very strong.
Today, outsourcing electronics production to other countries is a common practice. Companies that choose offshore factories can benefit from lower production or shipping costs, deeper expertise of local manufacturers, special export duties, political stability, and other factors.
There are many reasons why an OEM might choose to outsource its electronics manufacturing. And the decision can impact the business in a variety of ways, from the people and premises, through to the relationships the OEM holds with their existing customers and suppliers. Why Outsource?